Squire Corporation charged Job 110 with $14,000 of direct materials and $12,600 of direct labor. Allocation for manufacturing overhead is 70% of direct labor costs. What is the total cost of Job 110?

Question

Quizplus · Accepted Answer

Manufacturing overhead is 70% of direct labor costs, so it's 70% of $12,600 = $8,820. The total cost of Job 110 is the sum of direct materials, direct labor, and manufacturing overhead: $14,000 + $12,600 + $8,820 = $35,420.

Squire Corporation Charged Job 110 with $14,000 of Direct Materials